Anyone put irrigation on rented land

[JoshuaGA]

I know there have been several people around here putting pivots up on rented land around here, get a long term lease and put in the irrigation on it. Anyone here done that that would care to explain the mechanics of these leases. Know several farms around that would benefit from a few pivots on them, just not sure how it would cashflow out. I would say given good water you are looking at 2 to 3 times the yield depending on the year and crop.

[kwestfarms]

It would seem to me ( given that I'm not seen by some to be the sharpest tackin the box) that a 12-15 year lease would be minimum. Also if renter drills the well....is he compensated some at the end of lease or is he considered compensated by the increased production ?? Just alot of questions not much for answers on my part . John

[JoshuaGA]

From what I hear, most of these are being set up on 10 year, could be hearing wrong, end of lease the pivots and well revert to landowner, no residual value, at least so far as I understand. Not many farms for rent here, and I am leary of dryland ground, just would seem to be a good way to get my foot in the door if I can cashflow. I would agree longer would be better. I know a cousin is looking at putting in a pivot, half circle 50 acres, he can clear the whole circle, anyway, half circle turnkey pivot and well $80,000. I am just thinking it would be a way to get my foot in the door renting, but do I want to take that road?

[kwestfarms]

Josh : I rent every acre I farm (other than 3 acres on the house lot). Small operation...300+ acres. Up here I've always been able to rent cheaper than I can own. Rent is going up but so are land values. Every now and then I lose a pieceof ground but have rented some new also. Works for me....so will keep on with same plan. Every area is different so of course may or may not work for someone else. John

[JoshuaGA]

Jan 14, 2012 21:52:38 GMT -5 kwestfarms said:

Josh : I rent every acre I farm (other than 3 acres on the house lot). Small operation...300+ acres. Up here I've always been able to rent cheaper than I can own. Rent is going up but so are land values. Every now and then I lose a pieceof ground but have rented some new also. Works for me....so will keep on with same plan. Every area is different so of course may or may not work for someone else. John

You must have landlords that shop around. Here, it seems like once you get land, you have it until you let it go, it sells, or you die, it just doesn't seem to change hands often, and when it does, you don't hear about it unless someone wants you too. I certiantly am not about to go try to outbid someone, I like having neighbors for friends. I suppose it is silly, but if I am going to farm somewhere, my land or someone elses, I would like to have it so someone can drive by and think "He takes pride in his farm," maybe not postcard perfect but neat and relatively clean and trim, no washes, good terraces, clean crops, etc. Just my ramble on that subject, adds absolutely nothing to the origional thread.

[kwestfarms]

Josh : on the land that I've lost , the farm was sold and the owner knew that I was not interested in buying. I had one 80 with 56 tillable that I rented in 1983 , my son took over the home farm in 2000 and is renting that same 80 from the daughter of the man I rented from. So we've had that land for 29 years ! I've always farmed rented land like I owned it...lime when soil test calls for lime , maintain drainage , improve fertility , etc. John

[acfarmer]

Around here alot of the poorer ground changes hands. good ground seems to never change hands and there has been that slow sneaking cut throat/stab your neighbor in the back deals going on. Plus a couple BTOs have been throwed in the mix to keep things interesting. I find going the extra mile with the landlords by mowing the ditches , fixing the washouts, pushing out a fence row with the dozer here and there keeps the wolfs at bay. Sorry for getting off topic from the original question . Just adding to the last comments.

[JoshuaGA]

Talked to our neighbors today. The way they said theirs was worded was that they were renting on a 7 year lease at current rate, install the pivot, retained ownership so after the lease was up they would go year to year from there, if they lost the lease or the farm sold they would remove the pivots and pipe. In both cases an existing well is running the pivots, I would assume in their model if there wasn't an existing well, the landowner would have to drill the well.

[kwestfarms]

Sounds like a no lose situationfor the renter.....should be assured of better crops..... and he still owns the pivot if lease runs out or if ownership changes. Worked out good that well is already in place . John